The market sentiment remains negative as funding rates indicate a downward trend
AI Summary
According to BlockBeats, data from Coinglass reveals that the current funding rates on major centralized and decentralized exchanges indicate a negative sentiment towards the market. The funding rates for major cryptocurrencies are detailed in the accompanying chart.
Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and underlying asset prices, and are usually applied to perpetual contracts. This mechanism facilitates the transfer of funds between long and short traders, without the platform charging fees, to adjust the cost or profit of holding contracts and keep contract prices aligned with asset prices.
A funding rate of 0.01% indicates a baseline rate. When the funding rate exceeds 0.01%, it indicates an overall positive outlook towards the market. Conversely, a funding rate below 0.005% indicates a predominantly negative sentiment towards the market.
